What you need to know about China’s green energy certificate regime

1. Following China’s release of guidelines for the promotion of GEC, here is what companies should know if they plan to enter the trading market.

2. Citing GEC rules, global law firm Norton Rose Fulbright noted that these certificates serve proof of the environmental attributes of green energy electricity. One GEC unit corresponds to 1,000 kilowatt-hours of green energy power, with a validity period of 24 months.

3. These certificates are being issued by the Qualification Management Center for Electricity Business of the National Energy Administration.

Aftercare by investment promotion agencies – overlooked or overrated?

1. Aftercare by investment promotion agencies – overlooked or overrated?  

2. Aftercare is key function of investment promotion agencies (IPAs) and most IPAs claim to provide some level of support to existing foreign investors in their location. IPAs should approach aftercare in a targeted way to use their resources effectively and generate the greatest results.

3. There are good reasons for IPAs to focus on aftercare. Helping existing investors to expand can sometimes be easier than attracting new ones, resulting in higher returns on the IPA’s efforts compared to bringing in new investors. Positive relationships with existing investors can lead to “repeat business”, as companies continue to add new (and often higher value) activities to their operations with the IPA’s support. Satisfied investors can also be valuable allies for attracting new investors, by providing testimonials or even referrals to their own corporate networks. In some cases, aftercare interventions by IPAs can prevent companies from leaving or at least mitigate the impact of relocations or closures.

4. Despite the many benefits, our experience shows that only few IPAs place significant emphasis on aftercare. Attracting and supporting new investors typically consumes most of an agency’s resources while aftercare is often done sporadically, when time allows or when changes in the investment environment make focusing on existing investors expedient (for example, during a pandemic).

5. Are IPAs missing an opportunity by not focusing more on aftercare? The answer depends on how an IPA approaches aftercare and what results it wishes to achieve.

What Foreigners Need to Know About Taxable Income in Malaysia

Malaysia operates a territorial tax system, meaning income derived from within the country is subject to taxation. For foreigners living or working in Malaysia, understanding taxable income is crucial to ensure compliance and avoid unnecessary liabilities.

Trump effectively pulls US out of global corporate tax deal

 1. President Donald Trump on Monday declared that a global corporate minimum tax deal "has no force or effect" in the U.S., effectively pulling America out of the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries.

2. Trump, in a presidential memorandum issued hours after taking office, also ordered the U.S. Treasury to prepare options for "protective measures" against countries that have - or are likely to - put in place tax rules that disproportionately affect American companies.

3. The European Union, Britain and other countries have adopted the 15% global corporate minimum tax, but the U.S. Congress never approved measures to bring the U.S. into compliance with it. The U.S. has a roughly 10% global minimum tax, part of Trump's landmark 2017 tax cut package approved by Republicans.